The central bank of Paraguay kept its benchmark interest rate unchanged at 1.25 percent on 21 May 2020 following 100 bps on 22 April 2020. The unanimous decision kept borrowing costs to the lowest on record. Policymakers said that global economic conditions remain uncertain and any reopening of economies will need to be gradual. On the domestic side, economic activity continued to deteriorate as expected by the central bank, while inflation trended down. The Committee added that it will continue to closely monitor latest domestic and international developments, in order to evaluate the next monetary policy decisions in a timely manner.

Interest Rate in Paraguay averaged 5.68 percent from 2010 until 2020, reaching an all time high of 8.50 percent in August of 2011 and a record low of 1.25 percent in April of 2020. This page provides - Paraguay Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Paraguay Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2020. source: Banco Central del Paraguay

Interest Rate in Paraguay is expected to be 1.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Paraguay to stand at 1.50 in 12 months time. In the long-term, the Paraguay Interest Rate is projected to trend around 2.50 percent in 2021 and 3.00 percent in 2022, according to our econometric models.

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The central bank of Paraguay kept its benchmark interest rate unchanged at 1.25 percent on 21 May 2020 following 100 bps on 22 April 2020. The unanimous decision kept borrowing costs to the lowest on record. Policymakers said that global economic conditions remain uncertain and any reopening of economies will need to be gradual. On the domestic side, economic activity continued to deteriorate as expected by the central bank, while inflation trended down. The Committee added that it will continue to closely monitor latest domestic and international developments, in order to evaluate the next monetary policy decisions in a timely manner.

2020-05-21

Paraguay Cuts Interest Rate By 100 Bps to 1.25%

The central bank of Paraguay slashed its benchmark interest rate by 100 bps to 1.25 percent on 22 April 2020 following another 100 bps cut on March 30 in an emergency meeting. The unanimous decision brought borrowing costs to the lowest on record. Policymakers said that global economic conditions have significantly deteriorated in the last weeks and that domestic demand has weakened considerably . The Committee added that it will continue to closely monitor latest domestic and international developments, in order to evaluate the next monetary policy decisions in a timely manner.

2020-04-22

Paraguay Cuts Interest Rate in Emergency Meeting

The central bank of Paraguay slashed its benchmark interest rate by 50 bps in an emergency meeting on March 23rd, joining peers across the world. The move follows a 25bps cut at its previous meeting, bringing borrowing costs to its lowest on record. Policymakers said that there is enough room for further monetary policy easing to help mitigate the impact of the coronavirus pandemic on the domestic economy, without risking the annual inflation target of 4%. The Committee added that it will continue to closely monitor latest domestic and international developments, in order to evaluate the next monetary policy decisions in a timely manner.

2020-03-23

Paraguay Holds Interest Rate at 4%

The central bank of Paraguay left its key monetary policy interest rate steady at 4 percent on 24 February 2020, saying the current policy stance remains appropriate to reach the 4 percent inflation target. The central bank noticed that the coronavirus outbreak has become a new factor of incertainty. It also underscored that economic activity showed a favourable dynamism during the last months of 2019. On the price front, it mentioned that inflation remains in the bottom range of the central bank target and that the expectations is for it to gradually return to the long-term target.

2020-02-24

Paraguay Interest Rate

In Paraguay, interest rates decisions are taken by the Central Bank of Paraguay (Banco Central del Paraguay). The official interest rate is the 14-day interest rate (la tasa de 14 días).